The Rangers Supporters' Trust have accused other Clydesdale Bank Premier League clubs of acting out of "malice" by refusing the application from the newco club to play in the SPL next season.
A meeting of all 12 SPL clubs took place on Wednesday and it was decided Charles Green's new Rangers would not be allowed to compete in the top flight.
Mark Dingwall, as spokesman for the Trust, now believes entering the club in the Irn-Bru Third Division is the only option.
He said: "We are disappointed but not surprised by this decision which has been taken out of malice rather than for the greater good of the Scottish game. This decision is also a massive social blow as refusing entry to the SPL will likely result in job cuts at the club as well as damage the local Glasgow economy.
"The decision has absolutely nothing to do with sporting integrity as if it was the club would be joining the SFL in the third division rather than being parachuted into the first division.
"If Steven Thomson, Rod Petrie, Stuart Milne and the other SPL chairman who voted to refuse Rangers entry into the SPL are serious about sporting integrity then they too will insist on the club starting again from the bottom of the football league.
"If Rangers are to enter the football league then we must do so with integrity by joining the third division and working our way up."
Dingwall was scathing in his views on the decision taken by the SPL and feels the club has now been punished enough for previous wrongdoing. "The SPL in one hand claims to be protecting sporting integrity yet in the other is trying to enforce a shameful solution that is solely designed to protect their self-interest," he said.
"Given that new-found desire of most SPL chairmen to listen to fans they will surely take on board the findings of the recent survey of Rangers season-ticket holders which shows that 80% of fans think Rangers should join Division Three.
"When the club does enter the SFL the ridiculous and Draconian transfer embargo must be lifted. The club currently has only 13 first-team squad players and if it is to be able to properly compete next season and move on from this saga then it needs to be able to sign players."